The Future of EV Charging Funds: Legal Wins and Uncertain Roads Ahead

by | Jul 18, 2025 | Incentive News | 0 comments

The rollout of electric vehicle (EV) charging infrastructure in the U.S. has hit a legal and political crossroads. Earlier this year, billions in EV infrastructure funding, approved under the Biden administration’s National Electric Vehicle Infrastructure program, were abruptly frozen by the incoming Trump administration. The resulting halt triggered an EV funding lawsuit in 2025, led by a coalition of 16 states and the District of Columbia, accusing the administration of unlawfully withholding funds already allocated by Congress.

The NEVI program, created as part of the Bipartisan Infrastructure Law in 2021, was designed to distribute $5 billion over five years to build a nationwide EV charging network. The program aimed to cover up to 80% of eligible project costs, prioritizing highway corridors before expanding to broader areas. As of early 2025, an estimated $3.3 billion of that funding had already been made available to states.

However, in February, the Trump administration ordered a halt to the program, suspending the approval of all state EV infrastructure deployment plans. The Federal Highway Administration announced that no new obligations would be approved until revised guidance was issued, effectively freezing active and upcoming projects. The administration framed the move as a policy review aligned with its priorities, though critics viewed it as part of a broader rollback of environmental initiatives.

The response from states was swift. Attorneys general from California, Colorado, and Washington led the charge in a lawsuit that claimed the administration had overstepped its constitutional authority. They argued that withholding congressionally approved funds was not only illegal but also caused active EV projects to stall midstream.

On July 2, U.S. District Judge Tana Lin ruled in favor of 14 of the suing states, issuing a partial preliminary injunction that ordered the release of the withheld EV funds. Lin stated that the Trump administration had acted contrary to the law, violating the balance of power between the executive and legislative branches. She wrote, “When the Executive Branch treads upon the will of the Legislative Branch… it is the Court’s responsibility to remediate the situation.”

While the ruling restored funding to most of the affected states—including California, Arizona, and New York—it excluded the District of Columbia, Minnesota, and Vermont due to a lack of demonstrated immediate harm. The injunction is set to take effect unless the administration files an appeal.

Despite the legal victory, the future of EV infrastructure funding remains unsettled. Many states are still navigating permit delays, contractor shortages, and complex electrical upgrades. Meanwhile, the Trump administration maintains it was only pausing the program to issue updated guidance, not eliminating the funding altogether.

As the EV funding lawsuit 2025 moves forward, the ruling has temporarily restored momentum to a program many see as essential for transitioning to cleaner transportation. But with billions still in limbo and a shifting political landscape, the path ahead for EV infrastructure remains anything but certain.

Read the full articles, originally published by AP News and The Guardian.

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